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Is Your Retirement Plan on Track? Five Questions to Ask This Fall

With only a few months left in the year, October is a good moment to find out whether your retirement plan is where it should be. The good news is that you can still make meaningful changes before December 31. Start with these five questions.

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OCTOBER IS A GOOD MOMENT TO FIND OUT WHETHER YOUR RETIREMENT PLAN IS WHERE IT SHOULD BE.

1. How Much Will You Actually Need?

Many people focus on a single “magic number,” but a better approach starts with spending. Estimate what you will spend each year in retirement, separating essentials (housing, food, insurance, healthcare) from discretionary items (travel, dining, gifts).

A common rule of thumb says retirees can withdraw about 4% of their portfolio in the first year and adjust for inflation afterward. That is a useful starting point, not a guarantee. Your ideal rate depends on your age at retirement, your investment mix, and market conditions early in retirement. Someone retiring at 60 may need to be more conservative than someone retiring at 70.

Also remember that healthcare is often the largest surprise. Medicare covers a great deal, but premiums, deductibles, and uncovered services can add up. Long-term care is a separate and significant risk worth planning for.

2. Are You Saving Enough, and in the Right Places?

Contribution limits are generous, and many people leave money on the table. For 2026, the employee deferral limit for 401(k), 403(b), and most 457 plans is $24,500. If you are 50 or older, you can add a catch-up contribution of $8,000. Workers aged 60 to 63 may be eligible for a higher “super catch-up” amount of $11,250. The IRA limit is $7,500, with an extra $1,100 catch-up for those 50 and older. Limits change periodically, so confirm current figures with your plan administrator or the IRS.

If you cannot max out your accounts, prioritize in this order:

  1. Contribute enough to earn your full employer match. It is an immediate return you cannot get elsewhere.
  2. Fund a Health Savings Account if you are eligible. It offers a rare triple tax advantage when used for medical costs.
  3. Contribute to a Roth or traditional IRA.
  4. Return to your workplace plan and increase contributions toward the limit.
 

If you are behind, raising your savings rate by even one or two percentage points each year can close the gap with little pain.

3. Do You Have a Tax Diversification Strategy?

Retirement savings generally fall into three tax categories: pre-tax (traditional 401(k) and IRA), tax-free (Roth), and taxable (brokerage accounts). Having money in all three gives you flexibility to manage your tax bracket each year in retirement.

For example, in a year with high expenses you might draw from Roth accounts to avoid pushing yourself into a higher bracket. In a lower-income year, you might convert some traditional IRA money to Roth at a lower rate. Without that flexibility, you may be forced to take taxable withdrawals when it hurts most.

Remember required minimum distributions, which force withdrawals from pre-tax accounts starting at age 73 for most people, and age 75 for those born in 1960 or later. Planning ahead can reduce the size of those withdrawals and the tax bite that comes with them.

4. How Will You Turn Savings into Income?

Building a nest egg and spending it are two different skills. In retirement you face sequence-of-returns risk: a market drop in the first few years can do lasting damage because you are selling investments while prices are low.

Several strategies can help:

  • A cash reserve: Keep one to two years of living expenses in cash or short-term bonds so you aren’t forced to sell stocks in a downturn.
  • The bucket approach: Divide assets by time horizon, with near-term money in safe holdings and long-term money invested for growth.
  • Guaranteed income: Social Security, pensions, and annuities can cover essential expenses, letting your portfolio fund the rest.
  • Flexible spending: Being willing to trim spending modestly after a bad market year can significantly extend the life of your portfolio.
 

The right mix depends on your comfort with risk and how much of your essential spending is already covered by guaranteed sources.

5. What Could Derail the Plan?

The best plans account for what could go wrong. Consider these risks:

  • Longevity: A healthy 65-year-old couple has a good chance that at least one spouse lives into their 90s. Plan for a long retirement.
  • Inflation: Even modest inflation erodes purchasing power over 25 or 30 years. Keep some growth investments in your portfolio.
  • Health and long-term care: Costs can be substantial. Explore insurance, hybrid policies, or a dedicated savings strategy.
  • Early retirement: Leaving work sooner than planned, whether by choice or not, shortens your saving years and lengthens your spending years.
  • Spousal considerations: Make sure the surviving spouse would be financially secure, with income, insurance, and account access in place
 

Don't Forget the Non-Financial Side

The most successful retirees plan for purpose as well as money. Think about how you will spend your days, where you want to live, and what relationships and activities will matter. Some people ease into retirement with part-time work or consulting, which can reduce portfolio withdrawals and delay Social Security, increasing your lifetime benefit.

Your Fall Retirement Checklist

  1. Review your retirement accounts and confirm your beneficiaries.
  2. Raise your contribution rate before year-end if you can.
  3. Check your investment mix against your timeline.
  4. Estimate your retirement spending, separating needs from wants.
  5. Run a projection that tests different market and longevity scenarios.
  6. Revisit your plan any time something major changes.
 

Retirement planning is not about predicting the future perfectly. It is about preparing for a range of outcomes so you can face whatever comes with confidence. If you would like help building or stress-testing your plan, contact our office to set up a retirement review.

This content is for educational purposes only and is not individualized investment, tax, or legal advice. Contribution limits and rules change, so please verify current figures and consult a qualified professional.

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